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The Swedish banking system is very big, but highly concentrated into mainly four big banks, which work predominantly with external funding. Additionally, Sweden is not a member of the euro area and for this reason it cannot rely on ECB liquidity. Anders Borg believes that if one of the big banks has to be bailed in this would increase the liquidity risk which, for its part, could lead to a systemic risk. The way the Swedish system is structured, it cannot work with the directive. He called for flexibility for the non-euro countries and also more possibilities for national solutions (discretion) to be provided. A proposal which Britain immediately seized.
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